Rachel Reeves’ tax war on businesses has been criticised as the “stupidest thing” as companies “operate at a loss” for the first time. As Britons brace for the pending November Budget, where the Chancellor has already admitted further tax hikes will be announced, businesses are still reeling from the increased National Insurance levy imposed last year. Express assistant editor James Walker has slammed Ms Reeves for going after the UK’s wealth creators, labelling the tax rise as “inexcusable”.

“I don’t have much sympathy, even if she does cry,” Mr Walker told the Daily Expresso podcast. “It’s one of the stupidest things I’ve ever heard of.” Giving an example, he said he knows of one business that “has never done anything less than break even”. He said: “They’ve run a profitable company for the last decade. This year was the first time they ran into a loss, because of the NI.

Rachel Reeves raised taxes for businesses in the last Budget (Image: Getty)

“For the first time ever they’ve not been able to give staff inflationary pay rises.”

Mr Walker warned that this will be happening across “several businesses and known on through the system”.

“That’s going to cause lower tax receipts and there’s going to be less growth, I don’t have much sympathy, even if she does cry,” he added.

While businesses struggle to recover from the 2024 October Budget, the Chancellor has admitted that she is set to hike taxes further and cut spending in the upcoming November Budget.

As Ms Reeves refuses to abandon the Government’s strict fiscal rules and plug the multi-billion pound financial black hole, the burden may fall back on hardworking families and businesses.

On Wednesday, the Chancellor told Sky News: “I was really clear during the general election campaign – and we discussed this many times – that I would always make sure the numbers add up.

“Challenges are being thrown our way – whether that is the geopolitical uncertainties, the conflicts around the world, the increased tariffs and barriers to trade. And now this (OBR) review is looking at how productive our economy has been in the past and then projecting that forward.”

She added: “Of course, we’re looking at tax and spending as well, but the numbers will always add up with me as chancellor because we saw just three years ago what happens when a government, where the Conservatives, lost control of the public finances: inflation and interest rates went through the roof.”